So if 50% is a default event and those CDS are triggered, how does that impact the deal. If 50% haircut doesn't trip CDS, and thus they are useless, what will happen (other than everyone jumping out of CDS zone)? Will the bond vigilanties then come out in full force?

10.40 And a bit more Greece - while the country itself gets some breathing space by wiping away 50pc of its debts, what of the people who lent them the money in the first place?

Unsurprisingly, many of the lenders to the Greek government were Greek banks. Now, the Greek government says it will most likely to have to nationalise large parts of the banks as a result of the write-downs. Shareholders in those banks could lose all of their investment as a result.

Andreas Koutras, an analyst at InTouch Capital Markets, said:

Greek banks never had choice on whether to buy Greek bonds, and they’re now being punished. It is possible equity valuations will go to zero.

Expecting a less volatile day today. The USD seems set to return to a bullish move higher which could be very signicant and signals big moves for the markets as very near. The ES and SPX are set for another small push higher to complete their waves, while the EURUSD, USDCAD, and AUDUSD all point towards a bottom for the USD. http://bit.ly/sW7hwm